Star Tribune disclosure statement approved; plan hearing Sept. 17

By Caroline Salls

Pittsburgh, July 31 - Star Tribune Holdings Corp. obtained court approval of the disclosure statement for its plan of reorganization, according to a Thursday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The plan confirmation hearing is scheduled for Sept. 17.

Under the plan, holders of first-lien lender claims will receive new common stock in the reorganized company and new secured term notes, and holders of general unsecured claims will receive new common stock and new warrants.

Holders of existing interests in Star Tribune Holdings will receive no distribution.

Treatment of creditors will include:

• Holders of administrative claims and other priority claims will recover 100% in cash;

• Holders of other secured claims will recover 100% either in cash or through reinstatement or the return of the collateral securing the claim;

• Holders of first-lien lender claims will recover 29.8% to 36.1% through a share of new class 3 common stock and new secured term notes;

• Holders of general unsecured claims will recover 0.5% to 1.3% through a share of class 4 common stock and new warrants;

• Holders of convenience claims will recover 0.9% in cash;

• Holders of interests in Star Tribune Holdings will receive no distribution; and

• Interests in Star Tribune will be reinstated.

Star Tribune is a Minneapolis-based information provider that includes the Star Tribune newspaper, StarTribune.com and other print and digital products and services. The company filed for bankruptcy on Jan. 16, 2009, and its Chapter 11 case number is 09-10245.

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